CONSUMERS' CO-OPERATION

NZ Truth, Issue 817, 9 July 1921, Page 3

CONSUMERS' CO-OPERATION

It's Growth m Otago aad Southland Getting Into Line With The Old Dart. (From " Truth's. " Dunedin Rep.) The . adjective " Co-operation" has been known for many years throughout New Zealand-, especially m connection with such enterprises as the N.Z. Farmers' Co-operative Associations, Ltd., of Auckland,, Hawke's Bay. Wairai-apa, Canterbury, Otago and Southland, and other kindred stock and agency businesses. All these businesses, of course, are joint stock . companies registered under the Companies' Act and its Amendments, and the ■worci co-operative is a trade name — only that and nothing more. However, these useful institutions do pay a bonus on purchases and, after allowing- for reserve funds, the bulk of their net profits is used for the payment of dividends m the share capital invested. In the consumers' co-opera-tive movement, though somewhat "belated, now rapidly developing m New Zealand, the profits belong to the purchasers, according to their purchases, and the shareholders merely' derive a nominal interest for the use of their subscribed capital, the subscribers of which are the self-same purchasers of goods and no others. For instance, if the dividend declare* after allowing- for reserve funds is, say, 2s m the £, it follows that 2s is refunded to the purchasers (for every £1 of goods purchased by such purchasers, or, m other words, what would have cost purchasers £1 at a privately-owned co-op, store. These consumers' co-operative' societies are not registered as ordinary joint stock companies under the Companies Act, but under the Industrial and Provident Societies' Act. There is another difference worthy of note: companies registered as ordinary joint stock companies pay income-tax on all net profits, while m the case of consumers' co-operative societies only the profits made from trading with nonmembers are subject to income-tax. Consumers' co-operative societies are established simply for the purpose of mutual aid andi to help m keeping within reasonable limits costs to the consumer. CO-OPERATION AND MUTUAL AID are the needs of the day. Yet we find certain alleged intelligent and advanced workers opposed, to co-opera-tion. Their contentions might contain some grain of fact if "dividends were paid on share capital; but as the .dividends are paid on purchases made by members and- non-members, and consequently cannot be brought under the heading rent, interest and profits, cooperative societies cannot be anti-so-cial. Some so-called Labor men In this Dominion have yet to learn that' It is the capitalist system that vis. wrong-, and not capital. The enemies; of the working class often make' use of this confusion m the minds of the people, m <srd-er to evade doing justice. They use the words Capital and Capitalism as though' they were_ substantially the same m meaning." The best definition of Capitalism,, m its present mixed good and evil, that' we have come across is the following: Capitalism is a kind of society m which the predominant means of production and distribution are owned and controlled by a comparatively small part of the people, while the propertyless section, which is very large, is forced- by the hard facts of life to work for a livelihood on other people's property for other

people's primary advantage and profit.

Every one will not agree with that definition, but let the critics give a better one if they can. When Capital is under the dictatorship of private individuals for the exploitation of others, it becomes Capitalism, not otherwise, and that is the position of Capital m the world of to-day. Consequently, we have now the dictatorship of the Capitalist: he can do as he pleases. And it is because he is so well established m the saddle that the evils of the system he dominates are l6ss apparent than are the obvious evils under a newly born dictatorship of .the proletariat. The latter dictatorship is wrong, too, and would bo as- great a curse to society as Capitalism undoubtedly is. Both dictatorships would destroy democracy; m fact, we see the rival systems facing each other to-day, and democracy getting strangled. If democracy is not an illusion, a happy mean must be found. Capital is one of the eternal facts of our economic life. But Capitalism contains the most terrible disease that the economic life has developed, As we have already said, what the world needs is co-operation and mutual aid; reconciliations all round and not, violent antagonisms. The Cooperative Commonwealth -will prove the happy mean for all.

For some years past we have had a Fruit-growers' Co-op, and the Potatogrowers' Co-op., and m the Riversdale and Balfor districts there is a Grain and Seed Producers' Co-op, m process of formation. There are also throughout the Dominion many cooperative dairy factories run by suppliers. In regard to consumers' coops., and their progress: Up to last New Year the only societies m Otago and Southland were three — one m Duned-in running a coal yard, one m Invercargill running a general store, and another m Kaitangata running a general store. In Dunedin the first fourteen months' business from the sale of coal showed over £315 net profit, and this amount was

WISELY PLACED TO RESERVE. Coming to some of the newer ventures since the New Tear, Mr. G. S. Thomson has certainly done a lot for the co-op, movement m Otago and Southland. His efforts, m the main, are bearing good fruit. The first place he invaded was Milton on January 10 last, and so well have the Milton people responded under their able secretary, Mr. Isaac Robinson, that they were able to open their own co-op, store on March 17 last. It is going ahead-. The Nightcaps Consumers' Co-op. Store is about being opened, and Baiclutha is following. Rapid strides have been made m Alexandra, and Greenisland is already forging ahead. Mosgiel is now on the eve of opening out. All these are certainly very hopeful beginnings under the aegis of consumers' co -operation. The movement. is gradually developing, but members must not lose their enthusiasm because commodities have dropped a bit. There is reall" no cessation m the high cost of living, for many workers are workless, rents are still high, and food is dear. Prices will keep going up and down under the Capitalist system, but co-operation an,cl mutual aid should, regardless of this, be forced ahead. In fact the present period, is an exceptionally good one for developing consumers' co-operation right throughout the country.

While on the subject of co-operation it may be interesting to learn several strange things, notably (1) That many parsons m Dunedin were lately bewailing the high cost of living; the inadequacy of - their "stipends," and the distress occasioned thereby; (2) that m Paris priests have formed a co-operative' society of their own, and it is proving a-, success. Now if the poor parsons and priests of Dun,edin could apply to themselves the lessons of their brethren m Paris, a solution of many things would arise: the laity would be less worried over continual but necessary collections, and the clergy would, m a great measure, solve their Economic troubles. They are numerous enough m Dunedin to combine and be as powerful for thoir bodies as they are m regard to otber

people's souls. But let us hear ■ 01! the clerical movement m Paris: Following 1 , the movement toward cooperation everywhere noticeable throughout the country, and to ireet the high cost of living-, a priest of Paris, Canon Lapalme, with the encouragement of Cardinal Amette, who had quickly measured the possibilities of the project, has organised a cooperative society for the Paris clergy known as "La Fraternelle." The object of the association is thus defined m the statutes: "To assure m the best possible condition the distribution and production of all products, merchandises, foods and other utilities for the use of the members and their households, and also the opening and manning of similar co-operative stores." It is open exclusively to the clergy and to Catholic institutions and has met at once with sucft a success that plans are being- made for the extenI sion of the work. Its advantages will be judged by the fact that foods and vegetables are obtained through it at the lowest wholesale price of the Paris market, and that some dealers m church goods already have been ob- ( liged to. lower their prices to meet the competition. The co-operative does hot aim at serving, the consumers' interests only, but proposes to look after the interests of a well-deserving class of producers as well. Many shops and many ,women home workers have to be satisfied with extremely low wages, or exposed to the demoralising influence of a- /wor]( done for patrons, extravagant or even immoral m their tastes. The co-operative will undertake to supply these worthy people with abundant work on altar linen, church vestments, etc. The capital already raised to finance the co-operative is 200,000 francs. The profits will be divided between the cooperative . itself, the shareholders, the employees and other organisations of its kind. Many efforts on the same lines are reported from various parts of the country, from Lyons to Amiens.